Indian Panel Likely To Consider Sales Tax On Crypto Next Week

According to a Bloomberg report, the Indian government panel will meet and discuss a goods and services tax (GST) on cryptocurrency transactions next week. 

The panel will include Central and State ministers to consider broadening the tax net to track dealings in virtual digital assets more effectively.  The panel is going to meet for two days in Chandigarh from 28 June.

Although the panel will not finalize the interest rate in the meeting they might discuss placing it in the highest tax slab of 28 percent.

A few months back, Finance Minister Nirmala Sitharaman implemented a 30% tax on income from the transfer of virtual assets and a 1 percent tax at source on all crypto transactions in a bid to assess the size of the crypto market in the country and track users. The government aims to remove uncertainty about the legal status of crypto transactions through this move. 

Currently, there is a lack of clarity on the imposition of a sales tax on digital currencies due to ambiguity in its treatment as goods or services and a lack of a regulatory framework.

Last month, Ajay Seth, the Economic Affairs Secretary, said that the government is almost ready with its consultation paper on crypto.

Seth said, "Our consultation paper is fairly ready. We have gone into a deep dive into this." 

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.